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Definition of 'Mortgage Insurance'
An insurance policy that protects a mortgage lender or title holder in the event that the borrower defaults on payments, dies, or is otherwise unable to meet the contractual obligations of the mortgage. Mortgage insurance can refer to private mortgage insurance (PMI), mortgage life insurance, or mortgage title insurance. What these have in common is an obligation to make the lender or property holder whole in the event of specific cases of loss.
Private mortgage insurance may be called "lender's mortgage insurance" (LMI) if the premium on a PMI policy is paid by the lender and not the borrower. This is typically done in exchange for a higher rate or fee structure on the mortgage itself.
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Investopedia explains 'Mortgage Insurance'
Mortgage insurance may come with a typical pay-as-you-go" premium payment, or may be capitalized into a lump sum payment at the time the mortgage is originated. For homeowners who are required to have PMI because of the 80% loan-to-value ratio rule, they can request that the insurance policy be canceled once 20% of the principal balance has been paid off.
Mortgage life insurance can be either declining-term (the payout drops as the mortgage balance drops) or level in its payout, although the latter costs more.
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Search results for 'Mortgage Insurance'
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http://www.investopedia.com/articles/pf/07/avoid_pmi.asp
6 Reasons To Avoid Private Mortgage Insurance. ... Also private mortgage insurance
often can be paid up front. For those people that ...
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http://www.investopedia.com/articles/pf/07/outsmart-pmi.asp
How To Outsmart Private Mortgage Insurance. November 15 2010 | Filed Under ยป
Mortgages, Property Insurance. One of the risk measures ...
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http://www.investopedia.com/articles/mortgages-real-estate/09/mortgage-impound-accounts.asp
... you to make a deposit on your homeowners insurance, private mortgage insurance,
any required additional insurance (like flood insurance) and your property taxes ...
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http://www.investopedia.com/articles/pf/05/022405.asp
... Today, a 20% down payment is desirable (as it minimizes private mortgage insurance
(PMI) requirements), but there are mortgage programs available that allow ...
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http://financialedge.investopedia.com/financial-edge/0911/Requirements-For-A-Post-Housing-Bust-Mortgage.aspx
... The FHA does not make loans, does not buy mortgages and operates basically
as a government-subsidized mortgage insurance company. ...
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http://www.investopedia.com/articles/mortgages-real-estate/08/home-ownership.asp
... $7,804 (.28 x 27,871 = 7,804). Private mortgage insurance (PMI) may also
be tax deductible for many Americans. (To learn more about ...
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http://www.investopedia.com/articles/mortgages-real-estate/08/homebuyer-financing-option.asp
... LTV also can contribute to loan costs by determining whether a borrower will
be required to purchase private mortgage insurance (PMI). ...
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http://financialedge.investopedia.com/financial-edge/1011/Top-12-Websites-For-Your-Financial-Edge.aspx
... The site also explains private mortgage insurance (PMI), annual percentage rate
(APR), the true percentage cost of the loan, and the minimum down payment ...
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http://www.investopedia.com/articles/mortgages-real-estate/10/top-mortgage-mistakes.asp
... Origination fees, mortgage insurance, title insurance, appraisal fees, attorney
fees and miscellaneous fees can quickly eat up your equity. ...
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http://www.investopedia.com/articles/pf/07/mortgage_decision.asp
... out of an existing loan, require that new financing be done at a higher interest
rate, require the payment of private mortgage insurance, or necessitate the ...
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